From Kiplinger · · 2m
Medicare Mistakes Retirees Make
Retirees often make costly Medicare errors: avoid 5 common pitfalls with this guide.
In brief
Retirees often make costly Medicare errors: avoid 5 common pitfalls with this guide. Retirees should file for Medicare at the right time, confirm health insurance coordination, understand Medicare parts, check past income impacts, and re-evaluate plans annually to avoid costly mistakes. Originally reported by…
Medicare feels automatic
Many retirees assume Medicare enrollment is automatic but this often leads to overlooking other coverage needs.
Employer coverage confusion
Retiree health insurance and COBRA plans do not count as current employer coverage that allows delaying Part B enrollment.
Medicare parts explained
Medicare Part A covers hospital care, Part B covers doctor visits, and Medigap helps pay gaps in coverage.
IRMAA surcharges
High past income can cause Medicare Part B premiums to double through IRMAA surcharges, affecting retirees two years later.
Annual plan re-evaluation
Medicare Advantage and drug plans change yearly, requiring re-evaluation during open enrollment to avoid costly gaps.
Medicare enrollment timing
Enroll for Medicare at the right time to avoid gaps in coverage and ensure all parts are properly coordinated.
Health insurance coordination
Confirm how current health insurance coordinates with Medicare to avoid gaps in coverage or unnecessary costs.
Medicare Part B costs
Medicare Part B costs $202.90 a month, often surprising retirees who expect it to be free.
IRMAA appeal process
Retirees can appeal IRMAA surcharges through Social Security, with 'work stoppage' events like retirement reducing premiums.
Medigap coverage details
Medigap covers costs Medicare doesn't fully pay, such as deductibles and copays for hospital and doctor visits.
Medicare Advantage options
Medicare Advantage plans bundle Part A, Part B, and often Part D coverage through private insurers with low or $0 monthly premiums.
Annual re-evaluation
Re-evaluate Medicare Advantage and drug plans each year during open enrollment to find better options.
Income impact on premiums
Past income can affect current Medicare costs through IRMAA surcharges, requiring careful review of financial decisions.
Social Security connection
Retirement decisions impact Medicare costs, with Social Security considering events like retirement when adjusting premiums.
Five-step retirement plan
Follow five steps to avoid Medicare mistakes: file at right time, confirm insurance coordination, learn parts, check income impacts, re-evaluate plans annually.
The short version
Retirees should file for Medicare at the right time, confirm health insurance coordination, understand Medicare parts, check past income impacts, and re-evaluate plans annually to avoid costly mistakes.
